Advertise with

Clover lowers earnings outlook, on effects of drought and rand.
Clover lowers earnings outlook, on effects of drought and rand.

Clover lowers earnings outlook, on effects of drought and rand

RETAILER NEWS - Sep 7th 2017, 13:23

Food, beverage and dairy group Clover has warned that earnings will be worse than previous guidance, as it reels from the after-effects of the 2015-16 drought and volatility in the rand, which inflated input costs. 

Clover expects headline earnings per share (HEPS) in the year to June to drop by 65%-67% from the 188.9c reported a year ago. In May it had warned that HEPS would fall 50%-65%.

It said selling price increases to counter cost pressures, and a cooler summer had also affected sales volumes, except for the new yoghurt and custard categories.

The share was priced marginally lower at R15.39 in mid-morning trade on the JSE, suggesting that the bad news could already have been priced in.

"While the after-effects of the prolonged drought will be felt for some time, a gradual recovery in milk and fruit production volumes is expected," the company said in the statement.
© BusinessLIVE MMXVII 

Read more about: sales | jse | clover

Related News

Retail sales remain muted with consumers under pressure
20/09/2019 - 14:31
Retail sales for July marginally declined to 2 percent year on year as sales growth continued to reflect a muted demand in South Africa, with consumers’ discretionary income under strain.

Clover, Milco merger puts 657 jobs on the line
17/09/2019 - 10:05
A total of 657 existing jobs will be on the line at Clover Industries in the next two years if the R4.8 billion merger between the JSE-listed dairy company and Israel-based Milco is approved by the Competition Tribunal.

Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.

Lego's sales bounce back with the help of Marvel superheroes
04/09/2019 - 09:11
Models of superheroes and villains from Marvel’s Avengers movies helped lift first-half sales at Lego, as the Danish toymaker continued its turnaround drive with investments in China, India, the internet and new stores.

Foschini's cash sales climb, but credit is under pressure
03/09/2019 - 13:58
The JSE-listed clothing retailer the Foschini Group [JSE:TFG] announced a 14.1% increase in cash sales in its South African operations in the first 21 weeks of 2020, while sales on credit only rose 0.9%.